The construction of the Ujjain plant is scheduled for completion by the first quarter of 2026. Credits: 8ED8 via Shutterstock.

Indonesia has received a boost from two major foreign direct investment (FDI) deals in recent weeks, one by China based chemical products manufacturer Sichuan Hebang Biotechnology and the other from US food and beverage multinational PepsiCo.

In a press statement released by Sichuan Hebang, the company said it plans to invest $800m (5.83bn yuan) in the construction of a chemical production base in the JIIPE Industrial Park in Surabaya, a port city on East Java island and the third-largest urban area in Indonesia, following Jakarta and Bekasi.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Sichuan Hebang CEO Zeng Xiaoping signed a letter of investment intent with Haryanto Adikoesoemo, president of AKR Group, a company that deals with the logistics and distribution of chemicals. In addition, Xiaoping signed a conditional land sale agreement with Bambang Soetiono, president of BKMS, a subsidiary of AKS.

The planned plant area is 67 hectares, and it will reach a production capacity of 600,000 tonnes each for sodium carbonate and ammonium chloride.

In a separate move, US-based PepsiCo said it will invest $200m (Rp3.05trn) to open a new snack factory in Cikarang, West Java.

The company said its new facility will be “prioritising local talent, harnessing local raw materials and strengthening the domestic value chain”, adding: “With its rapidly expanding economy, dynamic demographic profile and evolving consumer needs, Indonesia presents unparalleled opportunities, particularly in the food and beverages sector.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The factory will become operational in 2025.

News of these projects follows a significant increase in greenfield FDI projects in Indonesia in 2022. According to GlobalData, international companies announced 188 new projects in Indonesia in 2022, a 66.4% increase from 2021. In comparison, the Asia-Pacific region attracted 4,863 FDI projects from 2,989 foreign parent companies in 2022.

The government in Jakarta has recently welcomed several big names including SpaceX, which in June 2023 launched a $540m satellite project aimed at improving high-speed internet connectivity in Indonesia’s most remote areas.

Overall, gross domestic product in Indonesia is expected to grow in the next five years, from $1.18trn in 2021 to $1.82trn in 2026.